
Using & Understanding Mathematics, Books a la Carte edition (7th Edition)
7th Edition
ISBN: 9780134716015
Author: Jeffrey O. Bennett, William L. Briggs
Publisher: PEARSON
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Chapter 2.B, Problem 75E
To determine
We need to determine the following:
a) The flow rate of the water in the aftermath of Hurricane Katrina, and compare it with the average flow rate of the Colorado River in the Grand Canyon.
b) Rise in water level in a day at the given flow rate
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Students have asked these similar questions
In this problem, we consider a Brownian motion (W+) t≥0. We consider a stock model (St)t>0
given (under the measure P) by
d.St 0.03 St dt + 0.2 St dwt,
with So 2. We assume that the interest rate is r = 0.06. The purpose of this problem is to
price an option on this stock (which we name cubic put). This option is European-type, with
maturity 3 months (i.e. T = 0.25 years), and payoff given by
F = (8-5)+
(a) Write the Stochastic Differential Equation satisfied by (St) under the risk-neutral measure
Q. (You don't need to prove it, simply give the answer.)
(b) Give the price of a regular European put on (St) with maturity 3 months and strike K = 2.
(c) Let X =
S. Find the Stochastic Differential Equation satisfied by the process (Xt)
under the measure Q.
(d) Find an explicit expression for X₁ = S3 under measure Q.
(e) Using the results above, find the price of the cubic put option mentioned above.
(f) Is the price in (e) the same as in question (b)? (Explain why.)
Problem 4. Margrabe formula and the Greeks (20 pts)
In the homework, we determined the Margrabe formula for the price of an option allowing you to
swap an x-stock for a y-stock at time T. For stocks with initial values xo, yo, common volatility
σ and correlation p, the formula was given by
Fo=yo (d+)-x0Þ(d_),
where
In (±²
Ꭲ
d+
õ√T
and
σ = σ√√√2(1 - p).
дго
(a) We want to determine a "Greek" for ỡ on the option: find a formula for
θα
(b) Is
дго
θα
positive or negative?
(c) We consider a situation in which the correlation p between the two stocks increases: what
can you say about the price Fo?
(d) Assume that yo< xo and p = 1. What is the price of the option?
The Course Name Real Analysis please Solve questions by Real Analysis
Chapter 2 Solutions
Using & Understanding Mathematics, Books a la Carte edition (7th Edition)
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Ch. 2.A - Briefly describe the Understand-Solve-Explain...Ch. 2.A - What are units? Describe the meaning of key worxs...Ch. 2.A - Describe the meaning of the key words pre, of,...Ch. 2.A - Explain why a unit conversion really involves just...Ch. 2.A - Explain in words or with a picture why there are 9...Ch. 2.A - Describe how to read and use the currency data in...Ch. 2.A - I drove at a speed of 35 miles for the entire...Ch. 2.A - One dollar is worth about 115 Japanese yen, so 1...Ch. 2.A - I figured out how long the airplane will take to...Ch. 2.A - I have a box with a volume of 2 square feet.Ch. 2.A - I bought the fabric at X-mart, because their price...Ch. 2.A - An actual commercial: “The Goodyear Aquatread tire...Ch. 2.A - 13-20: Math Review. The following exercises...Ch. 2.A - 13-20: Math Review. The following exercises...Ch. 2.A - 13-20: Math Review. The following exercises...Ch. 2.A - 13-20: Math Review. The following exercises...Ch. 2.A - Prob. 17ECh. 2.A - Prob. 18ECh. 2.A - Prob. 19ECh. 2.A - Prob. 20ECh. 2.A - Prob. 21ECh. 2.A - Prob. 22ECh. 2.A - Using Key Words. Write out the three steps of the...Ch. 2.A - Using Key Words. Write out the three steps of the...Ch. 2.A - Area and Volume Calculations. Show clearly your...Ch. 2.A - Area and Volume Calculations. Show clearly your...Ch. 2.A - Prob. 27ECh. 2.A - Prob. 28ECh. 2.A - Prob. 29ECh. 2.A - Prob. 30ECh. 2.A - Prob. 31ECh. 2.A - Prob. 32ECh. 2.A - Prob. 33ECh. 2.A - Working with Units. Write out the three steps of...Ch. 2.A - Working with Units. Write out the three steps of...Ch. 2.A - Working with Units. Write out the three steps of...Ch. 2.A - Working with Units. Write out the three steps of...Ch. 2.A - Working with Units. Write out the three steps of...Ch. 2.A - Working with Units. Write out the three steps of...Ch. 2.A - Working with Units. Write out the three steps of...Ch. 2.A - What Went Wrong? Consider the following exam...Ch. 2.A - What Went Wrong? Consider the following exam...Ch. 2.A - 41-44: What Went Wrong? Consider the following...Ch. 2.A - 41-44: What Went Wrong? Consider the following...Ch. 2.A - 45-52: Unit Conversions. Carry out the following...Ch. 2.A - 45-52: Unit Conversions. Carry out the following...Ch. 2.A - 45-52: Unit Conversions. Carry out the following...Ch. 2.A - 45-52: Unit Conversions. Carry out the following...Ch. 2.A - Unit Conversions. Carry out the following unit...Ch. 2.A - Unit Conversions. Carry out the following unit...Ch. 2.A - Unit Conversions. Carry out the following unit...Ch. 2.A - Unit Conversions. Carry out the following unit...Ch. 2.A - Conversions with Square and Cubic Units. 43.Find a...Ch. 2.A - 43-48: Conversions with Square and Cubic...Ch. 2.A - 53-60: Conversions with Square and Cubic Units....Ch. 2.A - 53-60: Conversions with Square and Cubic Units....Ch. 2.A - 43-48: Conversions with Square and Cubic...Ch. 2.A - 53-60: Conversions with Square and Cubic Units....Ch. 2.A - Conversions with Square and Cubic Units. 59. An...Ch. 2.A - 53-60: Conversions with Square and Cubic Units....Ch. 2.A - Currency Conversions. Use the currency exchange...Ch. 2.A - Currency Conversions. Use the currency exchange...Ch. 2.A - Currency Conversions. Use the currency exchange...Ch. 2.A - Currency Conversions. Use the currency exchange...Ch. 2.A - Currency Conversions. Use the currency exchange...Ch. 2.A - Currency Conversions. Use the currency exchange...Ch. 2.A - More Unit Practice. Use unit analysis to answer...Ch. 2.A - More Unit Practice. Use unit analysis to answer...Ch. 2.A - More Unit Practice. Use unit analysis to answer...Ch. 2.A - More Unit Practice. Use unit analysis to answer...Ch. 2.A - 67-71: More Unit Practice. Use unit analysis to...Ch. 2.A - 72-75: Gas Mileage. Answer the following practical...Ch. 2.A - Prob. 73ECh. 2.A - Prob. 74ECh. 2.A - Prob. 75ECh. 2.A - Prob. 76ECh. 2.A - Full of Hot Air. The average person breathes 6...Ch. 2.A - Busy Reading. Suppose you have a tablet with a...Ch. 2.A - Landscaping Project. Suppose that you are planning...Ch. 2.A - Prob. 80ECh. 2.A - Prob. 81ECh. 2.A - 98. Units on the highway. Next time you are on the...Ch. 2.A - Are the units clear? Find a news story that...Ch. 2.A - South American Adventure. Suppose you are planning...Ch. 2.A - Currency Conversions. Use internet to convert $100...Ch. 2.B - The fact that 1 liter = 1.057 quarts can be...Ch. 2.B - Which is greater, 1200 meters or 3600 feet? a....Ch. 2.B - You are given two pieces of information: (1) the...Ch. 2.B - Which of the following is not a unit of energy? a....Ch. 2.B - You want to know how much total energy is required...Ch. 2.B - New Mexico has a population density of about 12...Ch. 2.B - A temperature of 110°C is a. typical of Phoenix in...Ch. 2.B - The concentration of carbon dioxide in earth’s...Ch. 2.B - The guidelines for a particular drug specify a...Ch. 2.B - A blood alcohol content (BAC) of 0.08gm/100 ml...Ch. 2.B - Prob. 1ECh. 2.B - Prob. 2ECh. 2.B - What is energy? List at least three common units...Ch. 2.B - Prob. 4ECh. 2.B - Prob. 5ECh. 2.B - what do we mean by density? What do we mean by...Ch. 2.B - drank 2 liters of water today.Ch. 2.B - I know a professional bicyclist who weighs 300...Ch. 2.B - My car’s gas tank holds 12 meters of gasoline.Ch. 2.B - My daily food intake gives me about 10 million...Ch. 2.B - Our utility company charges 10$ per watt for the...Ch. 2.B - The beach ball we played with had a density of 10...Ch. 2.B - Prob. 13ECh. 2.B - Prob. 14ECh. 2.B - USCS Units. Answer the following questions...Ch. 2.B - USCS Units. Answer the following questions...Ch. 2.B - USCS Units. Answer the following questions...Ch. 2.B - USCS Units. Answer the following questions...Ch. 2.B - USCS Units. Answer the following questions...Ch. 2.B - USCS Units. Answer the following questions...Ch. 2.B - Price Comparison. In each case, decide which of...Ch. 2.B - Price Comparison. In each case, decide which of...Ch. 2.B - Price Comparison. In each case, decide which of...Ch. 2.B - Price Comparison. In each case, decide which of...Ch. 2.B - Metric Prefixes. Complete the following sentences...Ch. 2.B - Metric Prefixes. Complete the following sentences...Ch. 2.B - Metric Prefixes. Complete the following sentences...Ch. 2.B - Metric Prefixes. Complete the following sentences...Ch. 2.B - Metric Prefixes. Complete the following sentences...Ch. 2.B - Metric Prefixes. Complete the following sentences...Ch. 2.B - USCS—Metric Conversions. Convert the following...Ch. 2.B - USCS—Metric Conversions. Convert the following...Ch. 2.B - USCS—Metric Conversions. Convert the following...Ch. 2.B - USCS—Metric Conversions. Convert the following...Ch. 2.B - USCS—Metric Conversions. Convert the following...Ch. 2.B - USCS—Metric Conversions. Convert the following...Ch. 2.B - USCS—Metric Conversions. Convert the following...Ch. 2.B - USCS—Metric Conversions. Convert the following...Ch. 2.B - USCS—Metric Conversions. Convert the following...Ch. 2.B - USCS—Metric Conversions. Convert the following...Ch. 2.B - Greenland ice sheet. The Greenland ice sheet...Ch. 2.B - Volcanic eruption. The greatest volcanic eruption...Ch. 2.B - Prob. 43ECh. 2.B - Prob. 44ECh. 2.B - 45-46: Celsius—Kelvin Conversions. Convert the...Ch. 2.B - 45-46: Celsius—Kelvin Conversions. Convert the...Ch. 2.B - Power Output. In each case, find your average...Ch. 2.B - 47-48. Power Output. In each case, find your...Ch. 2.B - Energy Savings. For these questions, assume that...Ch. 2.B - Energy Savings. For these questions, assume 365...Ch. 2.B - -56: Densities. Compute the following densities...Ch. 2.B - Densities. Compute the following densities using...Ch. 2.B - Densities. Compute the following densities using...Ch. 2.B - Prob. 54ECh. 2.B - Prob. 55ECh. 2.B - 51-56: Densities. Compute the following densities...Ch. 2.B - 51-52. Medication Doses.
51. The antihistamine...Ch. 2.B - 51-52. Medication Doses.
52. Suppose a dose of...Ch. 2.B - Blood Alcohol Content: Wine. A typical glass of...Ch. 2.B - Prob. 60ECh. 2.B - The Metric Mile. Consider the following world...Ch. 2.B - Prob. 62ECh. 2.B - Currency Conversions. Answer the following...Ch. 2.B - Prob. 64ECh. 2.B - Prob. 65ECh. 2.B - Prob. 66ECh. 2.B - 67-70: Gems and Gold. Use carats and karats, as...Ch. 2.B - 67-70: Gems and Gold. Use carats and karats, as...Ch. 2.B - 67-70: Gems and Gold. Use carats and karats, as...Ch. 2.B - Prob. 70ECh. 2.B - Prob. 71ECh. 2.B - The Star of Africa. The Star of Africa was cut...Ch. 2.B - Prob. 73ECh. 2.B - Prob. 74ECh. 2.B - Prob. 75ECh. 2.B - Prob. 76ECh. 2.B - Prob. 77ECh. 2.B - Prob. 78ECh. 2.B - Fertilizing Winter Wheat. Guidelines for the...Ch. 2.B - 80. Metric Area. When the metric system was first...Ch. 2.B - 69-70: Electric Bills. Consider the following...Ch. 2.B - 69-70: Electric Bills. Consider the following...Ch. 2.B - Prob. 83ECh. 2.B - Prob. 84ECh. 2.B - Prob. 85ECh. 2.B - Prob. 86ECh. 2.B - Prob. 87ECh. 2.B - Prob. 88ECh. 2.B - Wind Power: One Turbine. Modern wind energy...Ch. 2.B - Prob. 90ECh. 2.B - 62-67: Drug Dosing.
62. Solution Concentrations....Ch. 2.B - 62-67: Drug Dosing.
64. Infusion Rates for...Ch. 2.B - 62-67: Drug Dosing.
65. Infusion Rates for...Ch. 2.B - Prob. 95ECh. 2.B - Drug Dosing. 67. Administering Penicillin. A...Ch. 2.B - Prob. 97ECh. 2.B - Prob. 98ECh. 2.B - Should the United States Go Metric? Research the...Ch. 2.B - Prob. 100ECh. 2.B - Utility Bill. Analyze a utility bill. Explain all...Ch. 2.B - Prob. 102ECh. 2.B - 84. Air Pollution. Investigate the average...Ch. 2.B - Alcohol Poisoning. Research some aspects of the...Ch. 2.C - 1. A quantitative problem from daily life
a....Ch. 2.C - Prob. 2QQCh. 2.C - Prob. 3QQCh. 2.C - Prob. 4QQCh. 2.C - Prob. 5QQCh. 2.C - Prob. 6QQCh. 2.C - 7. When confronted with a complex problem, why can...Ch. 2.C - 8. Forty balls numbered 1 through 40 are mixed up...Ch. 2.C - 9. Karen arrives at the subway station every day...Ch. 2.C - Prob. 10QQCh. 2.C - Summarize the strategic hints for problem solving...Ch. 2.C - 2. Give an example of a problem that has more than...Ch. 2.C - 3. My simple problem-solving recioe will work for...Ch. 2.C - 4. Whether it’s a problem in mathematics or...Ch. 2.C - Mathematics requires precison, so approximations...Ch. 2.C - Prob. 6ECh. 2.C - A Toll Booth. A toll collector on a highway...Ch. 2.C - Prob. 8ECh. 2.C - A Second Race. Jordan and Amari run a 200-meter...Ch. 2.C - Prob. 10ECh. 2.C - Mixing Marbles. Consider the case in which each of...Ch. 2.C - 12. Coiling Problems. Eight turns of a wire are...Ch. 2.C - 13 Bowed Rail. Suppose a railroad rail is 1...Ch. 2.C - 14. China’s Population. To convince yourself that...Ch. 2.C - Alternative Thinking: The Monk and the Mountain. A...Ch. 2.C - 16. Crossing a Moat. A castle is surrounded by a...Ch. 2.C - Prob. 17ECh. 2.C - Prob. 18ECh. 2.C - Prob. 19ECh. 2.C - Prob. 20ECh. 2.C - Prob. 21ECh. 2.C - Prob. 22ECh. 2.C - Prob. 23ECh. 2.C - Prob. 24ECh. 2.C - Prob. 25ECh. 2.C - Puzzle Problems. The following puzzle problems...Ch. 2.C - 20-39: Puzzle Problems. The following puzzle...Ch. 2.C - 20-39: Puzzle Problems. The following puzzle...Ch. 2.C - Puzzle Problems. The following puzzle problems...Ch. 2.C - Prob. 30ECh. 2.C - Puzzle Problems. The following puzzle problems...Ch. 2.C - Puzzle Problems. The following puzzle problems...Ch. 2.C - Prob. 33ECh. 2.C - Prob. 34ECh. 2.C - Prob. 35ECh. 2.C - Prob. 36ECh. 2.C - Prob. 37ECh. 2.C - Prob. 38ECh. 2.C - Prob. 39ECh. 2.C - 40. You are planning to have a child. How much...Ch. 2.C - 49. Textbook Analysis. Although research shows...Ch. 2.C - 52. Multiple Solutions. Find an example of a real...Ch. 2.C - 53. Multiple Strategies. Find an example of a real...Ch. 2.C - Prob. 44E
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